Warren Buffett's succession era: Will Buffett's stance on cryptocurrencies change?

“Oracle of Omaha” Buffett is set to step down as CEO of Berkshire Hathaway by the end of the year, passing the role to Vice Chairman Greg Abel. This personnel change has sparked widespread market discussion, especially regarding whether Buffett’s long-standing tough stance on virtual currencies will soften under the new leadership team. Industry experts generally believe that the answer may disappoint cryptocurrency supporters.

Retirement at Year-End Does Not Mean Leaving Completely

Although Buffett will relinquish his role as CEO, he has chosen to remain as Chairman, maintaining control over Berkshire Hathaway’s strategic direction. This arrangement demonstrates his seasoned calculation — while granting his successor ample operational autonomy, he also ensures his continued influence over the company’s overall direction.

Sources within Berkshire Hathaway indicate that this transitional approach provides reassurance to shareholders. As GAMCO investment fund manager stated, Buffett remaining on the board will serve as a stable spiritual pillar for Berkshire. He even deliberately kept the news of his succession confidential until the shareholder meeting, allowing Greg Abel to handle the spotlight calmly without long-term interference from succession topics.

Years of Opposition to Cryptocurrencies, Deeply Rooted Stance

To understand Buffett’s influence at Berkshire Hathaway, one must first review his history of criticism toward virtual currencies. As early as 2018, he compared Bitcoin to “rat poison,” outright stating it has “no value,” and even called it “a real bubble.” At the shareholder meeting, he further extended the metaphor, saying “Bitcoin is very much like a gambling device.”

By 2020, Buffett’s mockery of cryptocurrencies remained sharp; he publicly declared, “Cryptocurrencies are worthless, I have never and will never hold any cryptocurrencies.” These remarks are not merely reflections of investment philosophy but represent a fundamental value conflict.

Late partner Munger also echoed this stance. Although both admitted they “don’t understand” tech stocks, their hostility toward cryptocurrencies goes far beyond mere lack of knowledge. It is a philosophical opposition.

Greg Abel Takes Over but Difficult to Shake Established Mindset

Greg Abel is currently Chairman and CEO of Berkshire Hathaway Energy, and also Vice Chairman of Berkshire Hathaway’s non-insurance businesses, with an impressive resume. However, regardless of his personal views on virtual currencies, analysts from KBW bluntly stated: “I would be very surprised if Berkshire Hathaway made a major shift in attitude toward Bitcoin.”

The analyst further pointed out that even if Greg Abel has objections, it is unlikely in the short term that he would take any actions that appear to diverge from Buffett and Munger’s value principles. The cultural barriers within Berkshire Hathaway are not something that can be overturned in a year or two.

Although Buffett has previously mentioned at shareholder meetings that if the U.S. economy faces unforeseen shocks, he would consider diversifying assets and moving into other currencies, his consistent harsh criticism of cryptocurrencies suggests that Bitcoin will not appear on any “asset diversification list.” The expectations of the virtual currency community are likely just wishful thinking.

Smooth Transition as a Commitment to Shareholders

Analysts generally believe that Buffett’s succession plan demonstrates his usual precision and foresight. Since he has decided to remain as Chairman, it sends a clear signal to shareholders — Berkshire Hathaway’s core investment philosophy will not be shaken by personnel changes.

For cryptocurrency investors, this may mean Berkshire’s indifferent attitude will persist. But for Berkshire’s shareholders, this stability is exactly the anchor they need.